Litvinov A. P.

Doctor of Philosophy, Lecturer Docent,

Priazov Technical State University

 

Shcherbakovà I.V.

 Postgraduate

Priazov Technical State University

 

Integration Problem of Ukrainian Transportation System in the context of Economic Integration of Ukraine with the European Union

Integration of Ukraine’s transportation system, first into European, and then into the global system is the significant constituent part of country’s economic integration with the EU.  Only comprehensive development of every aspect of Ukrainian transportation system that fully satisfies the transportation service demand of the national economy could make the integration possible.  At the same time, integration contemplates accounting of development of modern economic trend of the world, in the first place, the globalization process.  

Globalization has made a significant impact on the change of the geography of the sea and land transportation system.  It is continuing to establish a new transportation route drawing along with it flows of investment and cargo fleet.  Thus, increase in transnational trade flow has developed Trans-European communication system.  Ukraine with intense enthusiasm accepted the International Transportation Corridor (ITC) concept.  Even though some progress has   in this area, but it would be unjustified to interpret it as the determining factor, in the context of development of national transportation system, and its integration to the international transportation system.  

Time wise, road to Europe through the implementation of ITC is a very lengthy process, which also requires gigantic capital investment.  EU documents describe ITC as a complex network of land and water transportation artery with necessary infrastructure that includes auxiliary facilities, freight and passenger terminals, and motion control equipment.  Complying with the standards of European Union countries, this network operates according to the legal and normative regulations of European Union to facilitate cargo, and passenger transportation.  It means, the car traffic intensity in the ITC network must be no less than 20 thousand units per day at the speed 120 km per hour.  The same standard for railway transportation constitutes 100 km per hour.  Border crossing normative standard, according to the European standard, for car and the bus is 15 minutes, for railways 20 minutes, and for trucks 60 minutes.  It is very doubtful that Ukrainian highway system could comply with the set-forth normative rates in the current decade because of the extensive depreciation of the fixed assets. 

Every fifth slipper of railway track needs immediate replacement.  Locomotive fleet uses about 22% to 32 % of entire traction support resources that have already passed its life cycles.  The same is true for 13 % of passenger cars, and 25 % freight cars.  The average life expectancy of the truck is to be 7 years; however, as of today only 5.3% trucks of the entire fleet are 3-years old, and 35 % have already served over 10 years.  Modernization of the transportation system along with the construction of new facilities, which could integrate to the ITC needs 18 – 20 billion capital investment (Dergausov, 2000).  It is important to recognize that neither transport system, nor infrastructures is required for itself.  They are   for cargo and its transportation.  For example, eighty-five percent of country’s total export of services constitutes transportation services; sixty percent of it relates to transportation of Russian energy.  Overall conclusion shows that international transportation corridor (ITC) does not consider Ukraine as a maritime power.  Logistic should be conceptualized at the global level.  The concept is straightforward and well known: certain goods with the specified quality and quantity have to be shipped at the minimum cost from one place to another place.  The transportation system of all civilized countries is based on the above-described logistic concept.  Port management employees in Ukraine, irrespective of having high qualification, still work using the old method, which relates to achieving stevedore services at a competitive price instead of increasing the role of their entities in the integration process.  Port management personnel of Ukrainian ports are more oriented in solving problems related to stevedore and warehouse operations while their counterpart in foreign countries engages themselves in creating and offering better services at their ports.  Meanwhile, the “golden rule” of today’s management principle states that one, who cannot conceptualize at the global level, does not understand anything about management.

 

References

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Moisiev, S., Mikhailenko, K.  Terraincognito:  Globalization of Financial market.  Economic issues. 1999 No. 6

Pirozhkov, S.  It is high time for Ukraine to implement its own transit coefficient.  Mirror of the week.  1998.  No. 9